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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1919 By: Seifried
AS INTRODUCED
An Act relating to owners associations; amending 60
O.S. 2021, Section 857, which relates to copies of
recorded covenants and restrict ions; allowing buyers
to end transactions upon receipt of recorded
covenants and restrictions under certain
circumstances; providing that members of an owners
association may examine the books and records o f an
owners association; providing exceptions; r equiring
written requests; providing time line for inspecting
books and records; p roviding format of books and
records; allowing for certain records to be made
available to a buyer; requiring owners association
boards to adopt a records production and copying
policy that prescribes the costs that will be charge d
for the compilation, production, and reproduction of
requested information; requi ring confidentiality of
certain information; providing excep tions for
confidential information; requiring own ers
association to adopt and comply with a document
retention policy; providing for codification; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF TH E STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 60 O.S. 2021, Sect ion 857, is
amended to read as follows:
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Section 857. A. A copy or a certified copy of all the recorded
covenants and restrictions of a real estate development shall be
provided by the title company closing the sale to the buyer of
property in the real es tate development as a part of the closing of
the real estate sale. The buyer may be charged no more than Twenty -
five Dollars ($25.00) for the copy, and the copy shall either be
provided prior to or at the time of closing either by mail to the
buyer’s last-known address, hand-delivered or electronically
delivered.
B. If the buyer, upon receipt of the recorded co venants and
restrictions of a real estate development pursuant to subsection A
of this section, is unsatisfied with the terms and cond itions of the
recorded covenants and restrictions, the buyer sh all be allowed to
cancel the transaction without reta ining the earnest money deposit
or prescribed fees set by the real estate development.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 859 of Title 60, unless there is
created a duplication in numbering, reads as follows:
A. An owners association shall make the books and records of
the owners association, including financial records, ope n to and
reasonably available for examination by an owners association
member, or a person designated in a writing signed by the owners
association member as the member’s agent, attorney, or cert ified
public accountant, in accordance with this section.
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B. Except as provided by this subsection, an attorney ’s files
and records relating to the owners association, excluding invoices,
are not records of the owners association and are not subject to
inspection by the member or his or her representative. If a
document in an attorney ’s files or records relating to the owners
association would be responsive to a legally authorized request to
inspect or copy association documents, the document shall be
produced by using the copy from the attorney ’s files and records if
the association has not maintained a separate copy of the document.
This subsection does not require production of a documen t that
constitutes attorney work product or that is privileged as an
attorney-client communication.
C. An owners association member or his or her authorized
representative described by subsection A of this section shall
submit a written request for acce ss or information by certified
mail, with sufficient detail describing the owners association’s
books and records requested, to the mailing address of the
association or authorized representative . The request shall contain
an election either to inspect the books and records before obtaining
copies or to have the owners association forward copies of the
requested books and records and:
1. If an inspection is requested, the owners association, on or
before the tenth business day after the date the owners association
receives the request, shall send written notic e of dates during
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normal business hours that the owners association member may inspect
the requested books and records to the extent those books and
records are in the possession, custody, or c ontrol of the owners
association; or
2. If copies of identifi ed books and records are requested, the
owners association shall, to the extent those books and records are
in the possession, custody, or control of the owners association,
produce the requested books and records for the requesting party on
or before the tenth business day after the date the owners
association receives the request, except as otherwise provided by
this section.
D. If the owners association is unable to produce the books or
records requested under subsection C of this section on or before
the tenth business day after the date the owners association
receives the request, the owners association shall provide to the
requestor written notice that:
1. Informs the requestor th at the owners association is unable
to produce the information on or before the tenth business day after
the date the owners association received the request; and
2. States a date by which the information will be sent or made
available for inspectio n to the requesting party that is not later
than the fifteenth business day after the date notice under this
subsection is given.
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E. If an inspection is requested or required, the ins pection
shall take place at a mutually agreed -on time during normal business
hours, and the requesting party shall identify the books and rec ords
for the owners association to copy and forward to the requesting
party.
F. An owners association may:
1. Produce books and records requested under this section in
hard copy or electronic or other format reasonably available to the
owners association; or
2. Make available to prospective buyers, prior to closing, but
immediately upon payment of earnest money and any o ther prescribed
fees, the recorded covenants and restrictions for a fee assessed by
the owners association not to exceed Two Hundred Fifty Dollars
($250.00).
G. An owners association board shall adopt a records production
and copying policy that prescribes the costs the association will
charge for the compilation, production, and re production of
information requested under this section. The prescribed charges
may include all reasonable costs of materials, labor, and overhead .
An owners association member is responsible for costs related to the
compilation, production, and reproduction of the requested
information in the amounts prescribed by the policy adop ted under
this subsection. The owners association may require advance payment
of the estimated costs of compilation, production, and reproduction
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of the requested information. If the estimated costs are lesser or
greater than the actual costs, the owners association shall submit a
final invoice to the owner s association member on or before the
thirtieth business day after the date the information is delivered.
If the final invoice includes additional amounts due from the owners
association member, the additional amounts, if not reimbursed to the
owners association before the thirtieth business day after the da te
the invoice is sent to the owner s association member, may be added
to the owners association member’s account as an assessment. If the
estimated costs exceeded the fina l invoice amount, the owner s
association member is entitled to a refund, and the ref und shall be
issued to the owners association member not later than the thirtieth
business day after the date the invoice is sent to the owner s
association member.
H. Except as provided by subsection I of this section and to
the extent the information is provide d in the meeting minutes, the
owners association shall not release or allow inspection of any
books or records that identify the owners association member’s
personal financial information, including records of payment or
nonpayment of amounts due the owners association, an owners
association member’s contact information, other than the owners
association member’s address, or information related to an employee
of the owners association, including personnel files. Information
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may be released in an aggregate or summary manner that would not
identify an individual owners association member.
I. The books and records described by subsection H of this
section shall be released or made available for inspection if:
1. The express written approval of the owners association
member whose records are the subject of the request for inspection
is provided to the owners association; or
2. A court orders the release o f the books and records or
orders that the books and records be made available for inspection.
J. An owners association shall adopt and comply with a docume nt
retention policy that includes, at a minimum, th e following
requirements:
1. Real estate development instruments, bylaws, restrictive
covenants, and all amendments to the certificates of formation,
bylaws, covenants, and restriction shall be retained permane ntly;
2. Financial books and records shall be retained for seven (7)
years;
3. Account records of current owners association members shall
be retained for five (5) years;
4. Contracts with a term of one (1) year or more shall be
retained for five (5) years after the expiration of the contract
term;
5. Minutes of meetings of the owners association shall be
retained for seven (7) years; and
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6. Tax returns and audit records shall be retai ned for seven
(7) years.
SECTION 3. This act shall become ef fective November 1, 2024.
59-2-2726 MR 1/18/2024 11:25:31 AM